Part of the 20 billion equity loans, planned to strengthen companies’ equity, will be available in early May, announced Bruno Le Maire, Minister of the Economy. For sectors “Who are ready to restart, we will make available to them at the beginning of May eleven billion euros in equity loans”, he said, on Europe 1, Monday April 26. Small and medium-sized enterprises (SMEs), as well as medium-sized enterprises (ETI), will be able to claim it.
The “18 insurance companies, the Caisse des Dépôts et Consignations” were thanked by the minister for having “played the game” to enable these loans.
This is “New money for all companies that will be able to reinvest, rehire, recreate jobs”, welcomed the Minister by recalling that these loans were for a period of eight years with a grace period of four years.
The Minister of the Economy explained that this is a first round table and that there will be a second in June for equity loans, as well as another in the coming weeks on subordinated bonds .
Amount you have to pay loan may reach between 8.4% and 12.5% of 2019 turnover
According to the ministry, it is “The most important private fundraising for a debt fund in Europe for direct investments in companies”, excluding indirect investments, when a fund redeems units from other funds which have already made their investment.
The French participatory loan scheme had been validated by the European Commission in early March, with the first loans initially due to be distributed from April until June 30, 2022.
These loans and bonds are both considered quasi-equity because they are spread over a relatively long period and because their repayment does not take priority over other receivables.
The loan amount may reach 12.5% of 2019 turnover for small and medium-sized enterprises, and 8.4% of turnover for medium-sized enterprises. To have access to it, an SME will have to prove a turnover exceeding two million euros.